A：The primary focus of the conference call was on discussing Li's first quarter 2026 earnings, company performance, and strategies for various business segments.

A：The speakers in the conference call included the Chairman and CEO, Mr. Jie Wen Jiayu, who provided an update on overall performance and strategies; the CIO, Mr. Alvin Weqr, who discussed risk management initiatives; and the CFO, Mr. James F, who talked about the company's financial performance.

A：In the first quarter, Li's diversified ecosystem demonstrated strong operational resilience despite macroeconomic and industry challenges. The loan volume of installment e-commerce, inclusive finance, and FinTech empowerment businesses accounted for nearly 50% of the total loan volume of all those businesses, and these businesses grew faster than the online loan facilitation business, becoming the new growth drivers for the company.

A：The company's loan volume grew to RMB 5.3 billion, representing a quarter-over-quarter increase. The number of active users reached 5.17 million, with a rise of 14.1% over the previous quarter and 8.6% year over year. New active users increased by 1.04 million, up 63.3% quarter-over-quarter and 101.6% year-over-year. Net profit reached RMB 201 million.

A：Key initiatives undertaken by Li since the first quarter include the growth of diversified ecosystem businesses, which became the new growth drivers. The company efficiently connected with internet traffic platforms and financial institutions to unlock a new growth space for its business. The FinTech empowerment business began to grow rapidly with the Yunxi Technology Pro solution, while the installment e-commerce business deepened its presence in different consumption scenarios and expanded its partnership network.

A：The company has refined its risk strategies, optimized its product matrix, and seen improvements in asset quality. New credit report and certification AI agent and an interactive credit enhancement function were launched to improve user identification accuracy. The company has also introduced flexible repayment features for various products and allocated pricing and credit line resources to high-quality customers.

A：Customer experience and service efficiency have been improved through better coordination between frontline service and consumer protection teams, as well as various business lines. Key performance indicators showed significant improvement, and the company continued to invest in consumer protection and customer experience. Enhanced intelligent routing and queueing strategies, along with peak time early warning mechanisms, led to improved service efficiency.

A：Industry-wide risk began to decline in the first quarter of 2026 as the impact of new regulations subsided.

A：Specific risk performance improved compared to the fourth quarter of 2025, with a decrease in the day one delinquency ratio of total assets by approximately 7%, and an estimated decline of S TB 30 for new loans initiated in the first quarter by about 6%.

A：During the quarter, large models were scaled up in risk management scenarios to improve efficiency and effectiveness. High-risk asset management and automated risk inspection robots were optimized and upgraded to enhance risk identification capability and the efficiency of high-risk customer management. Real-time interactive credit line increases were enabled for prime assets, and dedicated prime customer segment management was implemented in the consumer credit business, focusing on white-collar customers and small and micro business owners.

A：The Intensive Finance Business continued to cultivate markets at the country level and implement a localized operation strategy tailored to the characteristics of country-level customers. Country-level business risk models were developed, and risk strategies were optimized with customer onboarding, credit granting, and pricing tailored to small and micro customers' risk profiles and credit needs in the agricultural supply and farming segment. Coordination for risk management and post-loan collection was also enhanced.

A：In the first quarter, an end-to-end prevention and control system was built to combat illicit activities such as assistive complaint. This included early warning, process interception, post-event enforcement, and ecosystem coordination. The system provided leads to public security authorities and facilitated the arrest of over 40 suspects in a fraudulent scheme.

A：For the second quarter of 2026, the plans include optimizing the asset mix and strengthening risk management over new loans. There is a goal to serve prime customers better, enhance their experience, and drive further growth in high-quality assets while maintaining stability and controllability.

A：The financial results for the first quarter of 2026 showed a total revenue of 3.3 billion, an 8.7% sequential increase. Net income remained strong, and the net revenue of the credit business increased by 7.2% or 98 million quarter over quarter. The overall growth was driven by a rise in tech empowerment service income, while credit facilitation income declined by about 10%. Net income of the installment eCommerce business increased by 41 million to 208 million. Operating expenses, including sales and marketing, research and development, general administrative expenses, and servicing costs, increased by 13.8%, or 169 million to 1.4 billion. Consequently, total expenses added up to 5 billion, an increase of 151 million, resulting in a net income of 201 million, an increase of 5.9%, or 30 million quarter over quarter.

A：The company plans to continue improving customer financial services and will deepen its customer financial approach by selling to different customer segments, improving customer experience through high-quality assets, optimizing, and strengthening the overall resilience. It will also continue to promote the healthy development of diversified ecosystem businesses and focus on compliance processes.

A：The company is focusing on improving customer experience, optimizing the balance between risk and rewards, and promoting the healthy development of diversified ecosystem businesses. It is also exploring new customer segments, products, and business models and is prioritizing compliance processes.

A：The asset quality of both new and existing loans has been improving, as indicated by a decrease in the delinquency ratio of total assets and a decline in the FTD 30 for new loans originated in Q1. The company expects to continue optimizing asset mix and strengthening risk management for new loans in the second quarter.

A：The company plans to maintain a prudent approach and strengthen operational resilience due to the uncertain macro environment. It does not provide specific numbers but expects positive contributions from the growth of ecosystem business, the offset effect of revenue contraction, and lower provisions due to improving asset quality. The company also anticipates a decrease in credit costs as risk continues to decline.

A：The company plans to cancel 20 million Ad, representing about 12% of its total outstanding shares. However, due to ongoing macro uncertainties, it has temporarily suspended new share repurchases. Going forward, it will balance shareholder returns with capital efficiency and remain flexible to adjust based on market conditions.